Details of direct, indirect taxes levied in Budget 2022-23
Taxable salary threshold increased from 600,000 to 1,200,000.
ISLAMABAD (Dunya News) – Finance Minister Miftah Ismail on Friday announced changes to direct and indirect taxes for the fiscal year 2022-23.
Details of the direct and indirect taxes as well as tax breaks to different sectors can be view below.
-Tax rebate for five years to New cinemas, production houses, film museums and 10 years for film and drama export.
-Income Tax exemption to Cinemas and producers
- Exemption of 8% withholding tax to film producers and distributors
- 0% sales tax and customs duty on import of film equipment
- Taxable salary threshold increased from 600,000 to 1,200,000
- Taxable threshold for AOPs and business individuals increased from 400,000 to 600,000
- Tax rate on income from behboob certificates reduced from 10% to 5%
- Fixed tax introduced for small retailers ranging from Rs. 3000 to 10,000 which will be collected through Electricity bills which will be full and final tax liability.
- Initial depreciation rate increased from 50% to 100%
- Tax collected at import stage made adjustable rental income on second property having value more than Rs. 25,000,000.
- Advance tax will be 2% of value in case of electric vehicles
- Advance tax for non-filers increased from 100% to 200%
- Windfall gain tax on banking companies increased from 39% to 42%
- Any citizen who is not resident in any country will be considered resident of Pakistan
-Advance income tax of 1% on foreign transactions through debit/credit/prepaid card while 2% will be collected from non filers.
- Sales tax exemption on import and supply of solar panels
- 0% sales tax on agricultural machinery and seeds
- Sales tax exemption on electricity and local supplies to Non-profit hospitals having 50 beds or more
- Revamped a taxpayer friendly ADRC for tax demands of 100 million or more.
- 0% Customs duty on agricultural related machinery.
- Capital gain tax structure changes from 4 years holding period to 6 years holding period.
- Advance tax increased form 1% to 2% for filers and 5% for non-filers.
- 2% additional tax on persons having incomes of Rs300 million or more
- Advance tax increased on cars of more than 1600cc.
- Customs and regulatory duties on approximately 400 tariff headings on industrial and manufacturing sector have been rationalized.
- Regulatory duties imposed to protect indigenous industries.
- Tariff rationalized on synthetic yarn.
- More than 30 active pharmaceuticals ingredients have been exempted from Customs duty